'Low carbon cars in the 2020s: Consumer impacts and EU policy implications' - new BEUC report

Mon 28 November 2016 View all news

A new report for the European Consumer Organisation (BEUC) by Element Energy assesses the financial effects on consumers of lower carbon vehicles beyond 2020. It also examines what policy makers will need to do in order to deliver the necessary reductions in carbon dioxide emissions from vehicles.

The report says that there will be numerous consumer benefits in having the most fuel and energy efficient cars available on the market through the utilisation of the full potential of available and cost effective technologies. The study finds that:
  • Between 2020 and 2030, driving more fuel and energy efficient cars will help reduce the cost of driving for motorists.
  • Ultra-low carbon electric vehicles will drop in price substantially and be highly competitive if not cheaper to run than conventional cars. By 2024 the average 4-year cost of running an electric vehicle should match that of a petrol car.
  • There is a strong potential to improve the fuel economy of petrol and diesel cars at a low cost – compared to a 2015 vehicle, consumers driving a new fuel efficient car in 2025 will save on average
  • €500 in fuel costs in the first year and over the whole lifetime between €4,400 and €9,400.
  • Lower income motorists will benefit the most from the reduced running costs of conventional and alternatively powered cars in second hand markets.
The report comments on what policy makers must deliver:
  • EU post 2020 policies to decarbonise and improve the fuel efficiency of cars should be ambitious and ensure that manufacturers invest in new technologies.
  • Policy makers must push for an EU NEDC equivalent fleet wide CO2 average emissions level of at least 70g CO2 /km for 2025 and 45g CO2 /km for 2030. This will benefit consumers through reduced fuel and energy consumption.
  • Between 2020 and 2030, there will be less need for governments to offer high-cost purchase price incentives for ultra-low carbon vehicles. Modest benefits, such as lower circulation taxes, should be sufficient.
  • Policy makers at every level need to recognise that passenger car decarbonisation strategies can also reduce air pollution and in turn protect human health.
  • Further action is needed on the deployment of charging infrastructure and understanding of battery durability, and its impact on the used electric vehicle market.
BEUC commissioned the consultancy Element Energy to explore what kind of consumer impacts can be expected from the roll out of lower carbon and fuel saving technologies in the period between 2020 and 2030, with a specific emphasis on the total cost of ownership (TCO) of a vehicle. An assessment was also made of the implications of delivering lower emissions vehicles into the 2020s with regard to the adoption of new EU passenger car CO2 and fuel efficiency targets. 

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